What Happens to Your Mortgage When You Sell Your Home?

Mortgage Broker - Vieira Mortgage Team

Given the availability of options, homeowners upgrade their homes even before their mortgage is fully paid off. This leads to a common question: Can they sell their home when the mortgage is not entirely paid? Yes, you can sell your home. However, it’s best to take assistance from a mortgage broker in Orange County to simplify the process.

What Happens In a Typical Sale?

When selling traditionally, you will be able to get more money than your current mortgage. Further, if you have paid a mortgage over the years, it would have built your home equity. Thus, you have an opportunity to cash in during sales. When the process moves ahead to choosing between the down payment and the mortgage loan, it is the buyer’s responsibility to bring in funds for settlement to your home selling price. The amount is used to pay-

  •     The remaining mortgage amount
  •     Home equity loans, if any
  •     Closing costs

After paying off all the debts in full, if any amount is remaining, it is the seller’s profit. You can then use the funds for financing the down payment of a new home or other things.

 

What About Mortgages During Short Sales?

Generally, a short sale happens when the home’s selling price is less than the debt’s total amount. As a seller and the property owner, you need to talk to the mortgage company to accept a loss as the sale proceeds from the home will be lower than the amount that you owe to them.

The selling process, thus in a short sale, works differently. Here instead of having the final say on accepting the offer, you need to get the lender’s approval before making the final decision. This thus slows down the process a lot.

 

What About Mortgages When You Buy and Sell Together?

In case you are trying to buy and sell the house at the same time, then selling at first will be beneficial. With this method, you will acquire the necessary payout by selling the old home, which can be used for a down payment of the new home.

While if you choose to buy first, then you will have to work a little harder. You need to arrange the details of both transactions. In case you don’t have enough funds from your sale to cover the closing costs and down payment, you will have to acquire financing from the following options.

  •     Use of home sale contingency
  •     Get a bridge loan
  •     Carry to mortgages

 

Hire a Professional For The Best Help

Given the complexity of the process, it will be better if you work with a mortgage loan, Refinance Orange County broker, to get the best out of your property. However, you must hire a reputable broker to enjoy the benefits. If you need a Conventional, Alternative Qualification, Jumbo, FHA, VA, or interest-only loan, then The Vieira Mortgage Team is here to offer you the best service. We have a team of skilled professionals who will provide you with different options and disclose the lowest cost and rate to benefit a lot. We maintain complete transparency with our clients to offer them reliable service.

Contact us today to hire the most reliable and trustable team in town.

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